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Recent research from the Association of Investment Companies suggests that 78% of investors plan to make use of their ISA allowance this year. 40% plan to use only the shares element , representing a 1% rise since last year, while just over a quarter plan to use both their cash ISA and investment ISA allowance, again representing a 1% increase on the previous year. more

A recent survey conducted by NS&I indicates that the demographic of ISA savers has undergone quite a few changes in recent years. A survey of over 1,200 UK adults revealed some interesting insights into the behavior of savers in the past few years. more

Britons not "savvy savers"

05 April 2006

Up to two-thirds of British households are not taking advantage of their annual ISA allowances, research by First Direct has revealed.

The online-based UK bank notes that this equates to savers handing over more than £1.25 billion in unnecessary tax each year.

The survey, carried out by the Department of Work and Pensions, reveals that Northern Ireland is the worst offending region- 79 per cent of households here are yet to take advantage of the tax break.

The south east is the most savvy area, although over half (58 per cent) of households there still do not hold an ISA account.

Ben Dunn, head of marketing at First Direct, said: "Each year…12 million people have signed up for their annual ISA allowance.

"But as Gordon Brown said during his budget speech, the total number of people who have joined up over the last seven years is just 16 million," he continued. "This suggests that for the vast majority, it's the same savvy savers who are signing up year after year."

Mr Dunn noted that First Direct was playing its part in encouraging "savvy saving", citing the latest edition of the e-ISA, which pays five per cent AER until September 1st.

The new tax year, and therefore a new opportunity to use your individual tax-free savings allowance, begins this Thursday, April 6th.